ABI Research forecasts that the total value spend of NFC mobile payments will rise from $4 billion in 2012 to $191 billion in 2017, breaking the $100 billion mark in 2016.
Mobile payments and more importantly the convergence between payment types – proximity, P2P and online – stored on a single NFC handset will be the initial trigger driving market convergence across a host of other markets, including ticketing, retail, loyalty, and access control.
Phil Sealy, research analyst, says, “Market convergence is at least two years away from reality. At ABI Research, we believe transportation and ticketing will be the first market to benefit from convergence, with 26% of all NFC handsets forecast to house a contactless ticketing application in 2017.
“Transport authorities will have the ability to offer additional added value services, including route planners, delay bulletins, time tables, as well as retail and loyalty, or advertising applications offering own brand or partnering/local business a platform to offer additional solutions to generate new revenue streams.”
“There remains a number of barriers and limiting factors that need addressing before convergence success,” says John Devlin, practice director. “The business models have not yet been clearly identified and proven with no real-world case studies to demonstrate the potential returns.”